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If you are
reading this article, it means you have managed to hang on
through the last two years of turmoil in the snow removal
industry. Survival alone is not enough. As we move into the next
snow season, we must keep several key points in place.
One is to know
your numbers even better than ever. If you had a hard time
making money during the last two seasons, “Watch Out!” Why?
Because we have had almost double the average snow per season
for the last two winters. This means you had the “opportunity”
to make “double” what you might make in an average season.
Secondly, know
your clients. Ask questions about them and their needs.
Understanding their problems, i.e., tenant loss, rent reductions
and general need to reduce their overall budgets, will help you
match up their needs to your service options. Work with them to
save money by knowing how to price your work. This will keep
both of you moving toward the same goals. But beware! This
marketplace and some clients will try to drive you to
desperation bidding. Desperation bidding will have you
performing work below your cost. Continuing to work below cost
will certainly ensure your failure. Always remember, “you are in
control.” It is just like being a good parent. Sometimes,
you have to say . . . No! If the client’s needs do not align
with yours, you may have to say . . . “No, thank you.”
Another key point
is to know your suppliers. The availability and price for salt
this year is still a little fuzzy. However, it does appear that
it will not be in as short supply as the last years. It will be
available, but it still may be unknown as to who you can trust
as your supplier. For those whose business plan and cashflow
forecast support “preseason” buying of salt – you rock! Planning
ahead will always reap benefits as you can secure salt prices
that you can trust. As for many of you, with the need to
purchase salt throughout the season, the price you will pay is
unknown for sure. So, just like with your clients, ask questions
of your salt suppliers. Look for one you can trust. If you are
new, ask around and find out what suppliers have kept their
promises in the past and which ones have not.
My “forecast” is
that the price will settle out well above the “good old days”
but not anywhere near the high price spikes we experienced back
in early ’08 and early ’09. The sure bet is . . . there is no
sure bet! The volume of snow will determine the ultimate price
of salt. So, select a supplier whom you can trust and feel
confident with to assure your client that their needs will be
met this winter.
Today’s economy
plunges us into a lot of unknowns and brings out the fear in
many of us. As entrepreneurs, we are well equipped to figure it
out. A definition of an entrepreneur is a “person who organizes,
operates, and assumes the risk for a business venture.” So get
out there and organize, operate and assume the risk of the
upcoming challenges, and when you are successful . . . you will
know the rewards.
Photo Courtesy of
Fisher Engineering©
MGIA – The
Landsculptor – August 2009
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